Business Risk — Cyber Tops Risk Officers List

EY and the Institute of International Finance’s third annual global insurance CRO survey is out. It checked in with risk officers around the globe to see what they’re thinking about risk to their business.

To no one’s surprise, 80% of the chief risk officers put cyber risk in their top five risks with most putting it at the top. That’s up 14% over a year ago.

Here’s what the report found:

• 80% of risk officers put cyber risk at the top
• 44% said strategic risk is the worst
• Regulatory compliance was third at 41%
• Third party risk got the attention of 40%
• 38% listed geopolitical-market risk

Breaking down cyber risk:

• 25% said data privacy and protection is their biggest worry
• 19% said protection against phishing
• 16% listed third-party vendor cyber risk management

“The most notable shift in the CRO agenda over time is the rise of third-party risk as a persistent top-tier concern,” the report said. “This highlights growing recognition of dependency risk across extended value chains — particularly as operational resilience requirements, outsourcing oversight and vendor concentration concerns increase.”

Fitch Ratings says AI plays a big part in those worries.

“AI is particularly disruptive to cyber risk because traditional vulnerability analysis was labor-intensive and offered limited financial upside for researchers, a gap AI now fills at scale and speed,” Fitch said in a brief earlier this month. “This lowers barriers for attackers, expands third-party risks, and could materially increase attack volume.”

Source link: Insurance Journal — https://bit.ly/4dq0HgT